Judge denies Twins Cities Archdiocese bankruptcy plans

A bankruptcy judge denied the Archdiocese’s reorganization plan, but also a competing plan made by the Creditor’s Committee, which represents the victims of clergy abuse.

The judge sent all parties to mediation along with the insurance companies involved. Despite both plans being rejected, including the plan the victims were in favor of, the victim’s attorney actually sees the denial as a good thing because the victims’ voices are finally being heard.

In the order, the judge was highly critical of the parties involved, except the victims. He pointed out that the bickering has gone on much too long and that some of the victims are in fact passing away without a resolution. He criticized the Archdiocese for minimizing the complaints and the pain, the parishes who have been quick to blame the Archdiocese and the victim’s lawyers for their very high fees. He also stated he believes the parishes should probably contribute to the compensation fund.

With that, all parties will go to mediation to try and work out a deal they can all agree on.    

“Today this signals the start of another way,” said Jeff Anderson, an attorney representing the victims. “A way where they will have to fully engage the insurance companies with the Archdiocese and the survivors for the first time in this process.”

The Archdiocese responded saying they agree with the judge, saying that the longer the process goes on the less compensation there will be for victims.

The Archdiocese released the following statement:

“Judge Kressel’s decision bolsters our resolve to move forward in the bankruptcy process. We are guided by his words from earlier this year, that the longer this process continues, the less money will be available for those who have been harmed. We note and are gratified that Judge Kressel has once again directly dismissed the assertions by creditors’ counsel that the Archdiocese has acted or is acting in bad faith regarding the reorganization. We look to engage with all participants in mediation as directed by the judge to bring a prompt and fair resolution.”

It is not known when mediation might begin.